BEIJING/WASHINGTON, June 3 – China on Monday accused the United States of violating a recently agreed trade truce and warned of strong retaliatory measures, raising tensions between the world’s two largest economies just weeks after a tentative easing of hostilities.
The Chinese Ministry of Commerce issued a sharply worded statement condemning a series of new U.S. actions as discriminatory and in breach of a consensus reportedly reached between President Donald Trump and Chinese President Xi Jinping during a phone call on Jan. 17.
“If the U.S. insists on its own way and continues to damage China’s interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests,” the ministry said, without specifying what actions it might take.
The statement comes amid a flurry of recent U.S. moves targeting Chinese interests, including expanded export controls on artificial intelligence chips, restrictions on chip design software sales, and the revocation of Chinese student visas. The New York Times also reported that Washington had barred the export of key jet engine parts and related technologies to China.
Trump on Friday accused China of failing to honor the tariff truce but did not elaborate. Meanwhile, U.S. Trade Representative Jamieson Greer said Beijing had not accelerated exports of critical minerals vital to high-tech electronics, further straining the fragile agreement.
White House economic adviser Kevin Hassett said last week that a call between the two leaders was likely, and Trump had expressed hope for further bilateral discussions. However, Beijing’s latest statement casts doubt on the prospect of such high-level engagement in the near term.
China “resolutely rejects these unjustified accusations” and maintains it has adhered strictly to the terms agreed in Geneva last month, the Commerce Ministry said. U.S. Treasury Secretary Scott Bessent added to the uncertainty, saying over the weekend that talks with Beijing had stalled and that a leadership-level conversation may be needed to move forward.
The renewed trade friction threatens to upend recent progress toward de-escalation after both sides appeared to step back from escalating tariffs in May. Analysts say further deterioration in relations could have broad implications for global markets and supply chains.
